SINGLE VARIABLE REGRESSION 2

( x p− x́ )

√
1. Hypothesize deterministic components of^y model 1
± t ∝ s 1+ + DF n−2
relating mean E(y) to x. 2
n ( )
(∑ ) x
2

2. Use sample data to estimate unknown parameters. ∑ ( x 2 )− n

3. Specify Pop. Dist. Of random error (ɛ) and estimate
std. dist. of ɛ.
4. Statistically evaluate usefulness of model.
5. Use model for estimation, prediction, etc…
MULTIPLE REGRESSION
(ɛ) ASSUMPTIONS: random error
SSE
1. The mean of the prob. dist. of ɛ is 0. S2=
2. The variance of the prob. dist. of ɛ is constant for n−( k +1)
^β i ± t ∝ s ^ =C . I . for DF n−(k +1)
3.
all x values.
The prob. dist. of ɛ is 0. 2
β
( ) i

^β
4. Values of ɛ associated w/ any 2 values of y are
H o : ^β i=0∧H a : β^ i ≠0 t= i
independent. s ^β i
^y = β^ 0 { ý − ^β1 x́ }+ ^β 1 ¿ SECOEF :s β^
i

SSE(Unexplained Error)=∑ ( y 2 )− ^β 0 ∑ y− ^β 1 ∑ xy 2 SSR yy

SSE R=
S= Watch for High Leverage Pts. SST yy
n−2 n−1
s SRi >2 means outlier R a2 = (1−R 2)
s ^β = n−( k +1 )
1 2

√
∑x− n
^
2 (∑ )

^β 1 test :t= β 1−β 1

x
GLOBAL F
H o : β 1=β 2=β 3=β 4 =…=β i=0
H a : At least one of theabove coefficientsis nonzero .
s ^β 1 SSR R2
^β 1 ±(t ∝ )s ^ =(Confidence Interval for Slope DF n−2)
β1 k k
2 F= =
SSE 1−R2
∑ x∑ y n−(k +1) n−(k +1)
SS xy ∑ xy− n
r= =
√ SS xx SS yy 2 2
NESTED F

r 2=
√[
SSR(explained error )
=
2
∑ ( x )−
(∑ x )
n ][
∑ ( y )−
SST −SSE
2 (∑ y )
n ] H o : β g=β g+1=β g+2=…=β k =0
H a : At least one of theabove coefficie nts is nonzero.
SSER −SSEC
2
SST (∑ y )
2 k −g
∑ ( y )− n
F=
SSEC
ρ−test :t=r √ n−2 ( H : ρ=0 ) DF n−2 n−( k +1 )
2 0
√ 1−r v1 =k−g v 2=n−( k +1)
2
( x p − x́ )

√
1
^y ± t ∝ s + DF n−2
( )
2
n (∑ x )
2

∑ ( x 2 )− n